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Accused OpenAI spy had folder called “Saudi Gov Docs,” FBI says

On Monday, a court granted the US government's request to deny release of a former OpenAI engineer accused of bugging a top-secret conference room to steal the frontier lab’s secrets.

In a court filing Sunday, US attorney Craig Missakian argued that Abdulrahman Alfozan must continue to be detained while the US makes its case that Alfozan brazenly spied on OpenAI, either for his own personal business gain or to benefit the Kingdom of Saudi Arabia.

Evidence showed that Alfozan had been chatting with a member of the KSA royal family on WhatsApp, while pursuing opportunities to permanently move back to Saudi Arabia during the country's biggest AI push yet, the government argued. Shortly before his arrest, the FBI found he accessed a folder called "Saudi Gov Docs" on his iPhone, where he also allegedly stored photos of a second bug he planted in the offices.

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© BRENDAN SMIALOWSKI / Contributor | AFP

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Florida DMV hacked after police dept insecurely stored login info

The Florida Department of Highway Safety and Motor Vehicles (FLHSMV) has begun notifying victims impacted by a recent data breach of driver’s license and motor vehicle data, but not everyone whose information was stolen will receive an alert.

In a notice posted Friday, FLHSMV confirmed that it took “immediate steps” after discovering that “a malicious actor accessed certain department records on September 4, 2026, using compromised credentials.” There’s “no evidence” that data has yet been misused, the department said, but law enforcement “determined the information potentially affected includes driver license and motor vehicle data, to include document images, and other personal information.”

FLHSMV is sending out letters to everyone affected, offering victims one year of credit monitoring from Sontiq, Inc. However, the state acknowledged that it may not have current contact information for many former Florida residents whose data was still being stored. Those potential victims can confirm if their data was stolen by emailing FLHSMV at customerinquiry@flhsmv.gov, officials said.

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Disney found a way to buy Character.AI without buying its lawsuits

This week, Character.AI declared bankruptcy. While some saw the fall of a chatbot platform as a harbinger for the industry, court filings indicate that the decision was actually a key part of a deal that has let Disney hire most of Character.AI’s staff—including its now former CEO Karandeep Anand—potentially acquire most of Character.AI’s technology, and avoid the beleaguered startup’s many legal liabilities and obligations.

In the past few years, Character.AI has faced multiple private lawsuits over the safety of its chatbots, as well as investigations from regulators around the world. In a declaration filed as part of the bankruptcy, Character.AI’s newly appointed CEO explained that the goal of the bankruptcy was to reach a “consensual resolution” with personal injury claimants and a group of states investigating the company, while maximizing the value of the company’s assets for shareholders.

The Disney deal seems to be structured so that whatever is left of Character.AI will retain responsibility for those legal battles, some of which are still ongoing.

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